Request for Applications for licensing of Mobile Virtual Network Operator (MVNO) Services in Kuwait - Issued by CITRA on 14/07/2019
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Request for Applications
for licensing of Mobile
Virtual Network Operator
(MVNO) Services in Kuwait
Issued by CITRA on 14/07/2019BACKGROUND
The Communications and Information Technology Regulatory Authority (CITRA) is the
entity authorized to regulate the information and communications technology sector in
Kuwait. CITRA’s law of establishment No. 37 of 2014 and the amended law No. 98 of
2015 provides the legislative foundation for developing and regulating the sector where it
defines its functions, governance, and financing. CITRA’s Bylaws and policies provide
the regulatory measures of the Telecommunication and ICT sector in Kuwait.
At present, mobile telecommunications services in Kuwait are offered by Mobile
Telecommunications Company (Zain), Kuwait Telecommunications Company (VIVA)
and National Mobile Telecommunications Company (Ooredoo).
The purpose of this Request for Application (RFA) is to provide instructions to applicants
wishing to submit applications for a public mobile virtual network operator service
license in Kuwait.
1 DEFINITIONS
The words and expressions defined in CITRA’s law no. 37 of 2014 and the amended law
no. 98 of 2015 shall have the same meaning when used in this RFA. The following words
and expressions shall have the meaning assigned to them below unless the context of the
RFA requires otherwise.
CITRA or Authority means the Communications and Information Technology
Regulatory Authority.
RFA means this Request for Application for licensing mobile virtual networks operator
(MVNO services in Kuwait) including its Appendices, which together contain the
requirements and instructions for filing the Applications for Licenses.
Consortium means a group of members including companies/establishments and an
MVNO partner that have agreed to work together as an Applicant and that have
committed to establish a Kuwaiti-registered company in order to become eligible to hold
the MVNO license if selected to do so in accordance with relevant laws and regulations
of Kuwait.
Applicant means a Consortium that submits an Application.
Application means an application for a License to provide Mobile Virtual Network
Operator Services in Kuwait filed in response to this RFA.
Page 1 of 39Authorized Signatory means any person who is duly authorized by each member of the
Consortium through the provision to the Authority of a valid power of attorney made by
the duly authorized representative of each member of the Consortium and attested by a
notary public and in the form given in Appendix 4. In the case of a power of attorney
issued in a jurisdiction other than Kuwait, it should be duly attested by the relevant
Kuwaiti consular mission in the country of the member of the Consortium.
Business Proposal means the business, commercial and operational plans of the
Applicant concerned.
Compliance Checklist means the list of documents contained in Appendix 9.
Container means a box or a container enclosing an original and five (5) printed copies of
an Application as well as an electronic copy.
Cover Letter means the cover letter to be submitted as part of an Application in the form
of the Cover Letter Form in Appendix 3.
Deadline means the date specified in Section 3.1.4 of this RFA.
Effective Date means the date of issuance of the License as specified in the License.
Eligible Applicant means an Applicant who is determined by CITRA to be eligible for
selection for award of a License under the procedures set out in Section 3.2.1 of this
RFA.
Evaluation Criteria means the criteria set out in Appendix 2 against which the
Applications of Eligible Applicants will be evaluated.
Facilities Based Provider (FBP) means a service provider who builds, owns and
operates a public telecommunication network in Kuwait.
Financial Comfort Letter means the financial comfort letter to be submitted in the form
of the Financial Comfort Letter Form in Appendix 5 of this RFA.
Host FBP means the FBP providing mobile network capacity to the MVNO on a
wholesale basis for resale to end-users.
Licensee means the Successful Applicant issued with a Mobile Virtual Network Operator
Services License.
Mobile FBP means a licensed service provider who builds, owns and operates a public
telecommunication network providing Mobile Cellular Services in Kuwait.
Mobile Virtual Network Operator (“MVNO”) means a Licensed Service Provider that
resells wholesale mobile network services which are leased/purchased from a Host FBP
Page 2 of 39in order to provide retail services to the MVNO’s subscribers without spectrum
assignment or radio access network.
Preliminary MVNO Agreement (Preliminary Agreement) means a written, dated and
signed preliminary agreement between an Applicant and a Host FBP.
MVNO Agreement (Final Agreement) means the wholesale services agreement to be
entered into between a Host FBP and a Successful Applicant pursuant to the preliminary
agreement for the provision and resale of the services necessary to allow it to resell
services to end-users and operate its businesses on terms consistent with the general
framework of MVNO agreement.
MVNO Partner means a foreign MVNO who is a member of the Consortium and who
provides MVNO operating experience to the Consortium in accordance with CITRA’s
requirements.
Qualification Phase means the procedures described in Section 3.2.1 of this RFA during
which CITRA will verify that Applicants have submitted all required documents.
Selection Phase means the procedures described in Section 3.2.2 during which CITRA
will evaluate the Applications of Eligible Applicants by reference to the Evaluation
Criteria to select Successful Applicants for award of the Licenses.
Successful Applicant means an Eligible Applicant who has been selected by the
Authority for award of a License in the Selection Phase.
Technical Proposal means the technical plans of the Applicant as described in section
4.2.6.
2 GOVERNMENT LEGISLATION
This section sets out a brief summary of the regulatory measures established by CITRA
to control the telecommunications sector in Kuwait.
2.1 Regulatory Framework
2.1.1 CITRA has issued and will continue issuing Regulatory Framework
Documents which detail the Authority’s position on several areas and will
be available on CITRA’s website which include the following:
I. Fixed and Mobile Service Licensing.
II. License Classifications and Scope of Fixed and Mobile Services.
III. Quality of service.
Page 3 of 39IV. Interconnection Guidelines.
V. National Numbering Plan.
VI. Mobile Number Portability.
VII. Any other applicable regulations, guidelines and decisions.
The applicants are requested to familiarize themselves with the applicable Regulatory
Framework.
2.2 Foreign Ownership
Foreign ownership in the licensee will be subject to the relevant laws and regulations of
Kuwait.
2.3 Licensing
CITRA will issue licences to the successful applicants in accordance with its rules and
regulations under law 37 of 2014 and the amended law no. 98 of 2015
2.4 Number Allocation
Numbers will be assigned to the Licensee in accordance with the provisions stated in the
National Numbering Plan. The Licensee shall use such numbers in accordance with the
Authority’s regulations including the National Numbering Plan and any Decisions issued
by CITRA to regulate numbering.
2.5 Mobile Number Portability
The Licensee shall provide Mobile Number Portability to its end-users pursuant to
CITRA regulations.
2.6 MVNO Hosting
2.6.1 In this initial licensing phase, each MVNO shall be hosted by a single
Host FBP.
2.6.2 No Host FBP shall host more than one MVNO.
2.6.3 Subsequently, following an evaluation of the market, CITRA at its
discretion may consider:
I. Allowing MVNOs to move to another Host FBP.
II. Hosting of an MVNO by more than one Host FBP.
III. Hosting of more than one MVNO by a Host FBP.
IV. When it is appropriate to add further MVNOs.
Page 4 of 393 LICENSING SCHEDULE AND PROCESS
3.1 Licensing Schedule
The licensing schedule shall be as follows:
3.1.1 Interested parties can obtain this RFA starting on 14/07/2019 from the
CITRA website at no cost.
3.1.2 Potential applicants may submit any questions they have concerning the
RFA by no later than 22/08/2019 using the communication protocol set
out in section 6.7 of this RFA.
3.1.3 CITRA will reply to the questions by 03/10/2019.
3.1.4 Applications may be submitted under the procedure stated in section 5 of
this RFA at any from 06/10/2019 to 14/11/2019 at 2pm Kuwait time.
3.1.5 CITRA will evaluate the application of each applicant and announce the
successful selected applicants in the manner provided for in section 3.2
and appendix 2 of this RFA from 17/11/2019 to 06/02/2020.
Appendix 1 of this RFA contains the license award process timetable that summarizes the
licensing processing schedule.
3.2 Licensing Process
3.2.1 Qualification phase
In order to be an eligible applicant, an applicant must fill all documents
required to be delivered with the application as listed in the compliance
checklist (Appendix 9), all of which shall be complete, accurate and in due
form in accordance with the terms of this RFA and, where required, duly
signed by an authorized signatory on behalf of the applicant.
Applicants satisfying all of the requirements under this section will be
accepted as eligible applicants and proceed to the selection phase.
Applicants who do not satisfy all of these requirements will be rejected
and their applications will not be considered further.
3.2.2 Selection phase
3.2.2.1 The applications of eligible applicants will then be
evaluated by CITRA against the evaluation criteria
described in appendix 2.
3.2.2.2 Applications of Eligible Applicants will be separated into
up to three sets by reference to the name of the Host FBP
Page 5 of 39with which each Applicant intends to trade, as indicated by
the Preliminary MVNO Agreement filed by each
Applicant, and the highest scoring Application from each
set will be selected as a Successful Applicant. containing at
least the following:
I. The name of the Host FBP.
II. The name of the Applicant.
III. The scope and timing of wholesale services to
be provided by the Host FBP to the Applicant.
IV. Sufficient information to permit the Applicant to
confirm the viability of its detailed business
case, and stating, clearly, categorically and
without other conditions that the Host FBP will
enter into the final MVNO Agreement should
the Applicant be selected for the award of a
License.
3.2.2.3 Any eligible Applicant who fails to score at least 80 % of
the maximum possible score on the evaluation may be
rejected by CITRA.
3.2.3 Issue of the Licenses
3.2.3.1 Following completion of the Selection Phase, CITRA will
announce the names of the Successful Applicants.
3.2.3.2 Before the issuance of the License, each Successful
Applicant will be required to:
a) Establish a Kuwaiti registered company from the
Ministry of Commerce pursuant to the relevant laws
and regulations. The company shall not be entitled
to change its articles of association and company
objectives approved by the Ministry of Commerce
without submission of reasonable justification to
CITRA and obtain its consent in writing.
b) Submit a copy of the signed Management
Agreement certified by the Ministry of Justice.
c) Submit a copy of the signed final MVNO
Agreement.
Page 6 of 39d) Each Successful Applicant shall comply with the
provisions above within 120 days of the date of the
announcement by CITRA on its official web site.
3.2.3.3 The Authority shall, without liability to the Successful
Applicant who has failed to fulfil all of its obligations
under the section above, take any necessary action at their
discretion for example to subsequently select in its place
the next highest scoring Eligible Applicant in the same set
as that of the failing Successful who shall also be subject to
the same procedures described in section (3.2.3.2).
3.3 Eligibility of Existing Licensees
3.3.1 Existing Mobile FBPs in Kuwait are not eligible to apply for a License
under this RFA.
3.3.2 Existing mobile FBP’s in Kuwait are not eligible to own or control,
directly or indirectly, more than 10% of the shares in any Applicant.
3.3.3 In addition, telecommunications service providers in Kuwait or in any
other countries who currently hold 25% or more of shares in a Mobile
FBP in Kuwait are neither eligible to apply, nor permitted to have any
ownership in or control over any Applicant.
4 INSTRUCTIONS TO APPLICANTS AND APPLICATION CONTENTS
4.1 Part 1 - Cover Letter
A duly completed Cover Letter Form, as per Appendix (3) of this RFA, dated and signed
by an Authorized Signatory.
Applicants should attach all the information that is required pursuant to this Section 4 of
this RFA to the Cover Letter.
4.2 Part 2 - Main Proposal
The Main Proposal of the Application should include the following information:
4.2.1 Applicant’s details:
a) Legal name or proposed legal name of the Licensee.
Page 7 of 39b) Details of the ownership structure or the proposed ownership
structure of the Licensee.
c) Detailed information on each member of the Consortium. Such
details must include the name, legal status, registered office
address, a description of the business of each Consortium member,
and the percentage ownership of the share capital held in the
Consortium.
d) The financial statements of any controlling shareholder that
owns, or any proposed shareholder that will own, 25% or more of
the Applicant’s shares or, if applicable, the financial statements of
the Applicant. These financial statements must be provided for the
preceding two fiscal years and should include an audited or
certified income statement and balance sheet.
e) Either a certified resolution of the boards of directors of all
proposed shareholders in the Licensee or a notarized letter of
authorization from each of the proposed shareholders in the
Licensee which authorizes the Applicant to file the Application.
f) The Ownership Arrangements Letter as described in section
4.2.3.
g) A copy of the signed Preliminary MVNO Agreement made
between the Applicant and the proposed Host FBP. Only one
Preliminary MVNO Agreement may be submitted by the
Applicant.
h) The Financial Comfort Letter.
i) The Compliance Checklist.
4.2.2 Management Agreement
The Applicant shall submit a copy of the draft Management Agreement
that will be entered into on award of the License to provide the Applicant
with access to the technology, professional know-how, operational and
management experience required to operate the MVNO services. This
Management Agreement must be effective from the date of the issuance of
the license. Any subsequent amendments to the terms of the draft
Management Agreement will be subject to the prior approval of CITRA.
Page 8 of 394.2.3 Ownership Arrangements Letter
The Applicant must submit an Ownership Arrangements Letter in the form
shown in Appendix 8 that will be in place between the members
comprising the Applicant’s Consortium.
No modifications or add-ins are allowed to the list or ownership
percentages of Consortium members submitted by the Applicant after
filing its Application and prior to the issue of the License. Any request for
amendments after the issuance of the license will be determined in
accordance with CITRA’s regulations.
4.2.4 MVNO Partner Experience
The MVNO Partner shall own or control at least Forty percent (40%) of
the share capital of the Consortium.
The Application shall include details of the track record of the MVNO
Partner’s MVNO business experience in foreign markets. This shall
include the following:
I. Number of years of that partner’s experience
II. Number of its MVNO businesses currently in operation in at least
two countries
III. Number of its subscribers in each market in each county
IV. Total gross revenues of each of its MVNO businesses over the past
five years in each country.
V. A description of the MVNO services currently offered in those
businesses in each country.
VI. A description of its operational processes and approach in each
country.
4.2.5 Business Proposal
The Applicant shall provide information to show that the overall business
plan is viable, realistic and adequately funded and is consistent with the
details contained in the Technical Proposal. The Business Proposal Form
attached as Appendix 6 of this RFA should be used for the Business
Proposal.
The Business Proposal shall include:
a) High level corporate strategy, including how and to what extent
it would contribute to the Kuwait’s telecommunications market.
Page 9 of 39b) Market Study including market forecast, market segmentation,
customer penetration and uptake, proposed services and associated
prices, and covering the first five year of planned operation.
c) Customer Service and after sales support plan, proposed related
service levels and the continuous service quality improvement
plan.
d) Organization, including management, marketing, sales,
customer service, operations and maintenance.
e) Human Resource Plan, detailed human resource plan and
committed degree of national manpower in accordance with
Kuwait’s laws, rules and regulations.
f) A financial summary of the proposed MVNO Services business
in Kuwait covering each of the first five years of operation based
on the Pro-Forma Financial Summary attached as Appendix 7 of
this RFA. This will include:
• Financial plan.
• Profit and loss statement.
• Balance sheet.
• Cash flow statement and key assumptions driving the
revenue model.
• Bottom up analysis of the capital and operating costs for
the MVNO services.
4.2.6 Technical Proposal:
The Applicant shall provide a Technical Proposal with their application
which should include:
a) A concise description of the proposed approach to the rollout
and provision of MVNO Services in Kuwait.
b) A description of any infrastructure plan, and systems and
processes planned, including details of:
• Network operations.
• Customer service and after sales support, and
proposed service levels.
Page 10 of 39• Service performance monitoring and the
continuous improvement of service quality.
• Customer billing.
4.2.7 Application Fee
The Applicant shall pay CITRA a non-refundable 15,000 KWD (fifteen
thousand Kuwaiti dinars)
5 PROCEDURES FOR FILING AN APPLICATION
5.1 Each page of the original Application must be signed and stamped by an
Authorized Signatory.
5.2 An original and five (5) copies of the Application shall be packaged together in a
Container(s). Each Container shall be sealed, packed and closed, so that it is not
possible to open it. Improperly marked or sealed packages may be rejected by
CITRA.
5.3 The total size of the Application should not exceed 100 A4 pages with font size
no less than 12 points and all pages must be numbered Applicants may attach
additional information as appendices to the Application.
5.4 Each of the original and five (5) copies of the Application packaged together in
the Container(s) shall be submitted in a single sealed envelope or package clearly
marked “Application for License to provide MVNO Services". The original and
each of the five copies shall be respectively marked as "Original" and "Copy". In
the event of any discrepancy between the original and the copies, the original
shall prevail.
5.5 Applicants are also required to submit a softcopy which enable search capabilities
in any of the following formats (Adobe Acrobat®, Microsoft Word®, Microsoft
PowerPoint®, Microsoft Excel® or HTML).
5.6 Applicants must deliver the Container(s) by hand to the following address:
Financial affairs - Communications and Information Technology Regulatory
Authority
Floor (56)
Al-Hamra Tower
Sharq
Kuwait
Page 11 of 395.7 In case the application contained any errors, the person or persons signing the
Application shall sign on any correction.
5.8 Failure by any Applicant to provide all the information required in the
Application by CITRA may lead to the rejection of such Application.
5.9 Each Applicant will be required to submit in a separate envelope marked
“Application Fee”, an application a certified check drawn on a bank located in
Kuwait approved by the Central Bank in favor of “Communication and
Information Technology Regulatory Authority” with the amount stated in section
4.2.7.
6 GENERAL PROVISIONS
6.1 Request for Clarification
6.1.1 Questions concerning the RFA must be submitted to CITRA in Arabic or
in English. All questions should contain the name, address and e-mail
address of the questioner. All questions must refer to the relevant Sections
in the RFA and its Appendices.
6.2 Confidentiality of Applications
6.2.1 CITRA shall treat all Applications received in relation to this RFA as
confidential before the issuance of the Licenses, but Applications will not
be returned to Applicants.
6.2.2 CITRA shall not be liable in any respect whatsoever to any Applicant or
any of its members or representatives for damages or harm resulting from
a failure to maintain such confidentiality.
6.3 CITRA Use of Applications
CITRA shall have the right to use or reproduce ideas and information contained in an
Application without notice or compensation of any kind to the Applicant.
6.4 Cost of Application
The Applicant shall bear all costs associated with the preparation and filing of its
Application. CITRA will in no case be responsible for these costs, regardless of the
conduct or outcome of the Application.
6.5 Reservation of Rights
6.5.1 CITRA retains the copyright over this RFA and related documents.
Reproduction of these documents for purposes other than this licensing
process without CITRA’s written permission is subject to applicable
copyright rules and regulations of Kuwait. The information contained in
Page 12 of 39this RFA or subsequently provided to Applicants on behalf of CITRA is
provided to Applicants on the terms and conditions set out in this
document.
6.5.2 This RFA is not an agreement and does not constitute an offer by CITRA
to any other party.
6.5.3 It is not the role of CITRA to consider the investment objectives, financial
situation and needs of each Applicant.
6.5.4 CITRA shall have no liability whatsoever to any Applicants or, where
applicable, to any of their Consortium members, owners or shareholders or
any other person resulting from use of or reliance on any of the
information so provided.
6.5.5 Each Applicant should conduct its own investigations and analysis and
should check the accuracy, reliability and completeness of the information
set out in this RFA and obtain independent advice from appropriate
sources prior to use of or reliance on that information.
6.5.6 Notwithstanding any other provisions in this RFA, for whatever reason
and without incurring any costs or liabilities or any obligation to inform
the Applicants of the reasons for its actions, CITRA reserves the absolute
and unfettered right, in its sole discretion:
a) To take any action, including amending, updating and
supplementing this RFA and any other CITRA documents in
accordance with the laws of Kuwait and CITRA.
b) To modify the licensing process set out in this RFA and any
other CITRA documents.
c) To accept or reject any one or more Applicants who have filed
an Application and to waive any minor informalities or defects in
Applications received and to reject any Applicant or Application
which CITRA reasonably believes may pose a risk to national
security, safety or scarce resources or which, following the
issuance of a license, may lead to an anti-competitive environment
in the market for public telecommunications services in Kuwait.
d) To annul, postpone and/or terminate the licensing process at any
time before the License is issued without any liability on CITRA.
6.5.7 CITRA is not legally obliged to select any Applicant as a Successful
Applicant, or to issue a License to any Applicant.
6.5.8 Neither the Government of Kuwait nor any of its agencies, employees,
representatives, advisors or consultants, including CITRA , shall incur any
Page 13 of 39liability whatsoever to any Applicant or to any of its owners or
shareholders or any other person because of any decision made or action
taken by CITRA, about the evaluation and selection of an Applicant or the
carrying out or termination of the RFA process.
6.6 Other Provisions
6.6.1 Disqualification prior to issuance of License: CITRA may refuse to
evaluate Applicants and remove them from further consideration for any
of the reasons below:
a) Failure to comply with any of the procedures or other
requirements established by this RFA;
b) Any attempts by the Applicant to influence the evaluation of
Applications;
c) Any corrupt practice by the Applicant, to influence the action of
a public official in relation to the licensing process established by
this RFA;
d) Any fraudulent practice by the Applicant, including
misrepresentations of fact or intention, and collusive practices,
prior to or after submission of Applications, designed to undermine
the integrity of the RFA process.
6.6.2 Applicants are not allowed to contact any member of the Board or staff of
CITRA and its Advisors in any way whatsoever to seek clarifications or
other information regarding this RFA document other than by the means
given in this RFA. Any breach of this requirement will result in the
disqualification of the Applicant.
6.6.3 Disqualification After Issue of License: If at any time CITRA learns that
any of the activities referred to in Section 6.6.1 of this RFA has occurred,
CITRA will take a proper penalization action in accordance to law no. 37
of 2014 and the amended law no. 98 of 2015, bylaw and other legislations.
The provisions of this Section are in addition to any criminal or civil legal
action that may be available to or taken by any government entity or
regulatory authority, including CITRA.
6.6.4 This RFA shall be exclusively subject to, and interpreted solely in
accordance with the CITRA laws and regulations.
6.6.5 The Application and associated documentation must be submitted in
Arabic languages and a translation in English may be submitted with it. If
any discrepancies exist, the Arabic version shall prevail.
Page 14 of 396.6.6 All amounts of currency stated in the Application shall be expressed in
Kuwaiti Dinars (KWD).
6.7 Communications about the Licensing Process
6.7.1 All correspondence with CITRA, other than the filing of the Application,
shall be submitted to either of the following addresses:
a) By e-mail to: cod@citra.gov.kw
b) Delivery by hand to:
Financial affairs - Communications and Information Technology
Regulatory Authority
Floor (56)
Al-Hamra Tower
Sharq
Kuwait
6.7.2 All correspondence should contain the name, address, and e-mail address
of the sender for the dispatch of any written response.
Page 15 of 39Appendix 1 Award Process Timetable
Page 16 of 39Appendix 1
[Note to Applicants: please refer to Section 3.1 of the RFA]
INITIAL LICENSE issuance PROCESS TIMETABLE
Phase/ Event Period
Submission of questions on RFA 14/07/2019 – 22/08/2019
Answers on RFA questions 25/08/2019 – 03/10/2019
Submitting applications 06/10/2019 – 14/11/2019
Evaluation and announcement of successful 17/11/2019 – 06/02/2020
selected application
Page 17 of 39Appendix 2 Evaluation Criteria
Page 18 of 39Appendix 2
EVALUATION CRITERIA
The criteria against which Applications from Applicants will be evaluated, and the percentage
scores will be awarded in relation to each criterion in proportion to the appropriateness of the
information provided and the extent to which the Applicant has met or exceeded the minimum
requirements stated.
Evaluation criteria Percentage
1. Business Proposal 45%
1.1 Corporate Strategy, including how, and by how much, the Applicant’s
business would contribute to the Kuwaiti telecommunications market.
1.2 Market Study including market forecast, market segmentation,
customer penetration and uptake, proposed services and associated
prices, and covering the first five year of planned operation
1.3 Customer service and after sales support plan, proposed related
service levels and the continuous service quality improvement plan.
1.4 Services and Service Innovation, including the planned services of the
Licensee, the timing of the introduction of these services, and
proposed approaches to service innovation.
1.5 Organization, including management, marketing, sales, customer
service, operations and maintenance.
1.6 Human Resource Plan, including human resource plan and committed
degree of national manpower in accordance with Kuwait laws, rules
and regulations.
1.7 A financial analysis of the proposed MVNO Services business in Kuwait
covering each of the first five years of operation using the Pro-Forma
Financial Summary attached as per Appendix 7 of this RFA. This will
include a profit and loss statement, a balance sheet, a cash flow
statement and a financing plan. The financial information provided is
to include key assumptions driving the revenue model and a bottom
up analysis of capital and operating costs.
2. Technical Proposal 25%
2.1 A concise description of the proposed rollout and approach to the
provision of MVNO Services in Kuwait including: – Proposed service
launch date; –planned points of presence. These points of presence
are for sales, verification of subscriber identity, answering customer
queries, addressing customer concerns, and the activation of services
in accordance with the related regulations.
Page 19 of 392.2 A description of any infrastructure plan, and systems and processes
planned, including details of:
• Network operations;
• Customer service and after-sales support, and proposed
service levels;
• Service performance monitoring and the continuous
improvement of service quality; and
• Customer billing.
3. MVNO Partner Experience 30%
3.1 This includes:
a) The number of years of that partner’s experience.
b) Number of its MVNO businesses currently in operation (MVNO
Partner must operate MVNOs in at least 2 countries).
c) Number of its subscribers in each country (MVNO Partner must
have at least 1 Million customers in total across all countries).
d) Total annual gross revenues of all its MVNO businesses over the
past five years (MVNO Partner must have total annual gross revenues
of at least KD 10 million in any of the last 3 years).
e) A description of the MVNO services currently offered in those
businesses.
f) Description of the MVNO partner’s operational processes and
approaches in each foreign market.
g) Details of the levels of customer service and after-sales support
present in each foreign market.
h) Examples of service innovation introduced in each foreign market.
i) Evidence of the beneficial contributions made to the
telecommunications market in each foreign market.
Page 20 of 39Appendix 3 Cover Letter Form
Page 21 of 39Appendix 3
[Note to Applicants: please print this form and complete in accordance with Section (4.1) of the
RFA]
COVER LETTER FORM
Financial affairs - Communications and Information Technology Regulatory Authority
Floor (56)
Al-Hamra Tower
Sharq
Kuwait
[Insert Date]
Name of Applicant………………………
Dear Sirs,
Re: Request for Applications for the Licensing of MVNO Services in Kuwait
1. Having examined the RFA, we the undersigned hereby apply for the grant of a License to
provide Mobile Virtual Network Operator Services.
[Note to Applicant: Please provide a description of each of the Consortium members]
2. We have duly completed this letter and enclose herewith:
a) Main Proposal as detailed in Section 4.2 of the RFA.
b) The [powers of attorney/notarized certificates] that clearly evidence the authority to sign of
the signator[y/ies] of this cover letter and other documents filed with our Application that
require signature (using the Power of Attorney Form attached as Appendix 4 of the RFA).
c) A Financial Comfort Letter (using the Financial Comfort Letter Form attached as Appendix 5 of
this RFA).
d) A Separate envelope marked “Application Fee” of non-refundable 15,000 KWD (fifteen
thousand Kuwaiti Dinars only) contains a certified check drawn on an approved bank located in
Kuwait approved by the Central Bank of Kuwait in favor of “Communication and Information
Technology Regulatory Authority”.
e) An Ownership Arrangements Letter (using the Ownership Arrangements Letter Form attached
as Appendix 8 of this RFA).
f) A signed copy of the Preliminary MVNO Agreement.
g) A copy of the draft Management Agreement.
h) Details of the experience of the MVNO Partner (Section 4.2.4).
Page 22 of 39i) A completed Compliance Checklist (using the Compliance Checklist Form attached as Appendix
9 of the RFA).
3. We confirm our agreement to the terms, conditions and provisions of the RFA.
4. We agree that, in the event of a discrepancy between this cover letter and the RFA, the RFA
shall prevail.
5. We have been studying the requirements of the business plan carefully, therefore we as
applicant full responsibility for applying and implementing all indicated in this document,
including but not limited CITRA’s law, Bylaw and other legislations.
6. We confirm that all information provided in our Application and all associated documentation
is complete, true and accurate in every detail and by having applied, we are bound by the
information and commitments made by us.
7. For the avoidance of doubt:
a) In this letter, words and expressions shall have the same meanings as are respectively
assigned to them in the RFA.
b) This letter and all other documents comprising our Application shall be governed by and
construed in accordance with the laws of Kuwait.
8. We undertake that, if we are selected as a Successful Applicant, we shall:
a) Pay all required fees and amounts stipulated in the RFA.
b) Perform all other obligations required by the RFA including without limitation all
requirements set out in Section 4 of the RFA.
Yours faithfully,
[Signature of Authorized Signator[y/ies]]
[Name of Authorized Signator[y/ies]]
[Name of Applicant]
[Date]
Page 23 of 39Appendix 4 Power of Attorney
Page 24 of 39Appendix 4
[Note to Applicant: please print this form, complete and submit with Application]
POWER OF ATTORNEY
Name of Applicant……………………
Re: Request for Applications for the Licensing of MVNO Services in Kuwait
This power of attorney is made on [ ] by [ ] (registered number [ ]) whose
registered office is at [ ] (the Company).
The Company hereby appoints [ ] of [ ] to be its true and lawful attorney (the
Attorney) with the full power and authority of the Company in its name to:
a) Execute on the Company's behalf in whatever manner required any document or thing
lawfully necessary to affect the Application for the Mobile Virtual Network Operator License in
such form as the Attorney in his absolute discretion may reasonably deem necessary or
desirable; and
b) Do or cause to be done all such acts and things as the Attorney in his absolute discretion may
reasonably deem necessary or desirable to carry out and give effect to the Application for the
Mobile Virtual Network Operator License or any related matter.
The Company undertakes to ratify whatever the Attorney may do in its name or on its behalf in
exercising the powers contained in this document.
This power of attorney is governed by the laws of the State of Kuwait.
IN WITNESS of which this power of attorney has been executed as a deed and has been
delivered on the date which first appears above. [Signed as a deed by [ ]
Acting by [ ] And [ ]
……….……….……….……….………. Director
Page 25 of 39Appendix 5 Financial Comfort Letter Form
Page 26 of 39Appendix 5
[Note to Applicant: please print this form and complete in accordance with Section 4.2 of the
RFA]
FINANCIAL COMFORT LETTER FORM
Financial affairs - Communications and Information Technology Regulatory Authority
Floor (56)
Al-Hamra Tower
Sharq
Kuwait
[Insert Date]
Name of Applicant: ………………………………………………………..
Dear Sirs,
Re: Request for Applications for the Licensing of MVNO Services in the State of Kuwait
We, [insert name of signing bank] understand that [Name of Applicant] has made an offer to
acquire a MVNO License in the State of Kuwait.
Based on our thorough review of the following:
• The Request for Applications for the Licensing of MVNO Services in the State of Kuwait
(the RFA);
• The financial resources available to the Applicant.
We are confident that the Applicant will have sufficient access to funding to meet its peak
financing requirements of KD [ ] during the first five years of the business plan.
Our review and assessment is based on the information that was available to us at this date, and
is subject to various conditions. These include no substantial delays in the License award process
and the execution of documentation required.
This letter is not intended to create legal relations between us and is not a commitment to
provide financing to the Consortium.
This letter is governed by the laws of the State of Kuwait and the courts of the State of Kuwait
shall have exclusive jurisdiction to settle any disputes arising out of or about this letter. The
parties accordingly submit to the exclusive jurisdiction of the courts of Kuwait.
Page 27 of 39Yours faithfully,
[Signature of Authorized Signator[y/ies]]
[Name of Authorized Signator[y/ies]]
[Name of Issuing Bank]
[Date]
Page 28 of 39Appendix 6 Business Proposal Form
Page 29 of 39Appendix 6
[Note to Applicant: please print this form and complete in accordance with Section 4.2 of the
RFA]
BUSINESS PROPOSAL FORM
Financial affairs - Communications and Information Technology Regulatory Authority
Floor (56)
Al-Hamra Tower
Sharq
Kuwait
[Insert Date]
Name of Applicant: ………………………………………………………..
Dear Sirs,
Re: Request for Applications for the Licensing of MVNO Services in Kuwait
We, [insert name of Applicant] confirm that the attached document is our Business Proposal to
provide Mobile Virtual Network Operator Services in Kuwait. As such, this Business Proposal is
subject to the terms and conditions set out in the RFA for Mobile Virtual Network Operator
Services in Kuwait and the Cover Letter submitted with our Application.
Yours faithfully,
[Signature of Authorized Signator[y/ies]]
[Name of Authorized Signator[y/ies]]
[Name of Applicant]
[Date]
Page 30 of 39Appendix 7 Pro Forma Financial Summery
Page 31 of 39Appendix 7
[Note to Applicants: please print this form and complete in accordance Section 4.2 of the RFA]
PRO FORMA FINANCIAL SUMMARY
Name of Applicant: ………………………………………………………..
Re: Request for Applications for the Licensing of MVNO Services in Kuwait
Years after commercial launch
Unit Year 1 Year 2 Year 3 Year 4 Year 5
Market Assumptions
Population Millions
% Growth %
% Addressable Market %
Addressable Market Millions
Penetration Rate %
Operator assumptions
Market Share %
Market Share of Gross Adds %
Market Churn %
Average Number of Subscribers Millions
% Postpaid Subscribers %
On-net minutes Minutes millions
National minutes Minutes millions
International minutes Minutes millions
Incoming minutes Minutes millions
Total minutes of use Minutes millions
Revenue assumptions
Postpaid ARPU KWD
Voice ARPU KWD
Messaging ARPU (SMS/ MMS) KWD
Data ARPU KWD
Prepaid ARPU KWD
Voice ARPU KWD
Messaging ARPU (SMS/ MMS) KWD
Data ARPU KWD
Average ARPU (Postpaid and Prepaid) KWD
Voice ARPU KWD
Messaging ARPU KWD
Data ARPU KWD
Service Revenue KWD million
Equipment Revenue KWD million
Interconnect Revenue KWD million
Other Operating Revenue KWD million
Page 32 of 39Total Revenue KWD million
Operating Cost Structure
Average Acquisition Cost per KWD
Subscriber
Marketing Cost per KWD
Subscriber
Total Subscriber Acquisition KWD million
Cost
% of Revenue %
Average Administration Cost KWD
per Subscriber
Total Administration Cost KWD million
% of Revenue %
National Roaming Costs KWD million
Interconnect Costs KWD million
Wholesale service costs KWD million
Other costs of sales KWD million
Total cost of sales KWD million
% of Revenue %
Sales, marketing and KWD million
distribution expenses
General and administrative KWD million
expenses
Other operating expenses KWD million
Total Operating Expenditure KWD million
% of Revenue
EBITDA KWD million
% of Revenue %
Number of Employees #
Capital Cost Structure
Network equipment KWD million
Billing equipment KWD million
Customer services equipment KWD million
General IT systems KWD million
Total Capital Expenditure KWD million
% of Revenue
EBIT KWD million
% of Revenue
Net Income KWD million
% of Revenue
Applicant shall also state the proposed Capital for the Company at its founding:………………..KWD
Page 33 of 39Appendix 8 Ownership Arrangements Letter Form
Page 34 of 39Appendix 8
[Note to Applicant: please print and complete]
OWNERSHIP ARRANGEMENTS LETTER FORM
Financial affairs - Communications and Information Technology Regulatory Authority
Floor (56)
Al-Hamra Tower
Sharq
Kuwait
[Insert Date]
Name of Applicant: ……………………………………………………….. (“the Applicant”)
Dear Sirs,
Re: Request for Applications for the Licensing of MVNO Services Kuwait
We, [insert name of Applicant] wish to apply for a MVNO License in Kuwait.
We warrant and undertake to you that:
(a) the Applicant has entered into a Preliminary MVNO Agreement (as defined in the Request for
Applications) with [name of Host FBP] ( “Host FBP”), a true, complete and accurate copy of
which has been provided to CITRA.
(b) under the arrangements between the Applicant and the Host FBP, the Host FBP does not
and, should the License be awarded to this Applicant, will not at any time:
i. own, directly or indirectly, more than ten percent (10%) of any class of shares in the
Applicant.
ii. nominate any person to the board of directors of the Applicant (or Consortium).
iii. exercise control over the Applicant.
(c) no other Mobile FBP owns any shares in the Applicant or can exercise any control over the
Applicant.
(d) appropriate confidentiality arrangements are in force between the Applicant and the Host
FBP and:
Page 35 of 39i. the Applicant has secured the agreement of the Host FBP that the Host FBP will not
disclose any information contained within its Application to any other Applicant.
ii. should the License be awarded to the Applicant, the Applicant will not, within a
period of five years from the date of the issuance of the License, disclose to the Host
FBP or any other FBP any information relating to its retail or retail marketing
strategies, its customer care strategies or its intended range of retail services or
pricing or bundling strategies as they are or evolve from time to time.
(e) [Name of MVNO Partner] will own at least Forty percent (40%) of the shares in the Applicant
and has agreed to enter into a five-year Management Agreement with the Applicant to provide
it with the technology, know-how and operational and management experience required to
enable it to provide MVNO services in Kuwait; and a true, complete and accurate copy of such
agreement has been provided to CITRA as part of the Application.
(f) no telecommunications service provider incorporated in another country which holds twenty
five percent (25%) or more of any class of shares in a Mobile FBP in Kuwait owns or will own any
shares in the Applicant or is able or will become able to exercise control over the Applicant.
The warranties and undertakings contained in this letter are integral to the award process and
are of a continuing nature. If any warranty is untrue or any undertaking is breached, we confirm
that CITRA may treat this as a breach of the conditions of the License and proceed in the manner
provided for under CITRA Statutes.
The provisions of this letter shall cease to apply in relation to any information that has ceased to
be confidential and is then in the public domain.
This letter is governed by the laws of Kuwait and the courts of Kuwait shall have exclusive
jurisdiction to settle any disputes arising out of or about this letter. The parties accordingly
submit to the exclusive jurisdiction of the courts of Kuwait.
Yours faithfully,
[Signature of Authorized Signator[y/ies]]
[Name of Authorized Signator[y/ies]]
[Name of Applicant]
[Date]
Page 36 of 39Appendix 9 Compliance Checklist
Page 37 of 39Appendix 9
[Note to Applicant: please print and complete]
COMPLIANCE CHECKLIST
Financial affairs - Communications and Information Technology Regulatory Authority
Floor (56)
Al-Hamra Tower
Sharq
Kuwait
[Insert Date]
Name of Applicant………………………
Dear Sirs,
Re: Request for Applications for the Licensing of MVNO Services in Kuwait
Note: Where the Applicant is compliant, no additional notes or reservations shall be added. In
any case where the Applicant is not fully compliant with one or more of the following criteria
a full explanation must be provided. Note that this compliance checklist is merely a summary
of the RFA requirements, and in the case of any contradiction between the contents of the
RFA and the contents of this checklist, the RFA shall prevail.
Page 38 of 39Compliance Checklist Compliant (Yes/No) Reference to page numbers
in the Application
Cover Letter (Section 4.1).
I. Cover Letter Form (Appendix 3).
II. Power of Attorney (Appendix 4).
Main Proposal (Section 4.2).
I. Applicant’s details (Section 4.2.1), including all
items referred to in its sub-sections.
II. Copy of the signed Preliminary MVNO Agreement
(Section 4.2.1). Note: The Applicant shall submit
only one Preliminary MVNO Agreement.
III. Copy of the draft Management Agreement with a
foreign MVNO (Section 4.2.2).
IV. Details of the experience of the MVNO Partner
(Section 4.2.4).
V. Documentation verifying the MVNO partner
minimum requirements of at least two countries of
operation, 1 Million customers in total across all
countries, and total annual gross revenues of at
least KWD 10 million in any of the last 3 years.
VI. Financial Comfort Letter (Appendix 5).
VII. Ownership Arrangements Letter (Appendix 8).
VIII. Business Proposal (Section 4.2.5) including
Business Proposal Form as described in Appendix 6
and Pro-Forma Financial Summary as described in
Appendix 7.
IX. Technical Proposal (Section 4.2.6).
Application Fee (Section 4.2.7 and Section 5.9).
[Signature of Authorized Signator[y/ies]]
[Name of Authorized Signator[y/ies]]
[Name of Applicant]
[Date]
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